NPV & IRR worksheet with answers

Free printable NPV & IRR worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________   Date: ____________

1.Easy
years01234? 10 00020 0006 00012 000

A machine is expected to save €10 000, €20 000, €6 000, €12 000 at the end of years 1 to 4, after which it is worthless. The required return is 8%. What is the most the company should pay for the machine today? Find PV.

r = 8%CF1 = 10 000CF2 = 20 000CF3 = 6 000CF4 = 12 000
PV = €
2.Easy
years01234−80 00022 50022 50022 50022 500

A project costs €80 000 today and returns €22 500 at the end of each year for 4 years. The required rate of return is 12%. Find the profitability index PI.

C0 = €80 000CF = €22 500n = 4r = 12%
PI =
3.Medium
years0123456−50 00019 50017 00021 00021 50014 00021 000

A project costs €50 000 today and returns €19 500, €17 000, €21 000, €21 500, €14 000, €21 000 at the end of years 1 to 6. The cost of capital is 5%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.

r = 5%CF0 = −50 000CF1 = 19 500CF2 = 17 000CF3 = 21 000CF4 = 21 500CF5 = 14 000CF6 = 21 000
DPB = years
4.Medium
years01234−30 00011 00014 00010 00013 000

An investment of €30 000 gives these cash flows at the end of years 1 to 4: €11 000, €14 000, €10 000, €13 000. The cost of capital is 5%. Find the net present value NPV.

r = 5%CF0 = −30 000CF1 = 11 000CF2 = 14 000CF3 = 10 000CF4 = 13 000
NPV = €
5.Hard
years01234−10 0005 0006 0005 0004 500

A project costs €10 000 and returns €5 000, €6 000, €5 000, €4 500 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 12%. Find the modified internal rate of return MIRR in percent.

r = 12%CF0 = −10 000CF1 = 5 000CF2 = 6 000CF3 = 5 000CF4 = 4 500
MIRR = %
6.Hard
years012−10 0005 0007 500

A project costs €10 000 and returns €5 000, €7 500 at the end of years 1 to 2. Find its internal rate of return IRR in percent.

CF0 = −10 000CF1 = 5 000CF2 = 7 500
IRR = %

Answer key

  1. 1. PV = 39989 €
  2. 2. PI = 0.8543
  3. 3. DPB = 2.883 years
  4. 4. NPV = 12508 €
  5. 5. MIRR = 25.3 %
  6. 6. IRR = 15.14 %

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